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The Economic Effects of Slum Clearance and Urban Renewal in the United States

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Author Info

  • William J. Collins

    ()
    (Department of Economics, Vanderbilt University)

  • Katharine Shester

    ()
    (Department of Economics, Vanderbilt University)

Abstract

The Housing Act of 1949 established a federally subsidized program that helped cities clear areas of existing buildings for redevelopment, rehabilitate deteriorating structures, complete comprehensive city plans, and enforce building codes. The program ended in 1974, but not before financing over 2,100 urban renewal projects and generating great controversy. We use an instrumental variable strategy to estimate the program�s effects on city-level outcomes. The estimates are generally positive and economically significant and are not driven by differential changes in cities� demographic composition. We caution that the results do not imply that the program was an equitable or optimal approach to dealing with central-city problems.

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File URL: http://www.accessecon.com/pubs/VUECON/vu10-w13.pdf
File Function: First version, October 2010
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Bibliographic Info

Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 1013.

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Date of creation: Oct 2010
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Handle: RePEc:van:wpaper:1013

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Web page: http://www.vanderbilt.edu/econ/wparchive/index.html

Related research

Keywords: City growth; Redevelopment; Residential Segregation; Eminent Domain;

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  1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
  2. Leah Platt Boustan, 2007. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," NBER Working Papers 13543, National Bureau of Economic Research, Inc.
  3. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-29, October.
  4. Julie Berry Cullen & Steven D. Levitt, 1996. "Crime, Urban Flight, and the Consequences for Cities," NBER Working Papers 5737, National Bureau of Economic Research, Inc.
  5. Bound, John & Holzer, Harry J, 2000. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 20-54, January.
  6. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2008. "Identifying Agglomeration Spillovers: Evidence from Million Dollar Plants," NBER Working Papers 13833, National Bureau of Economic Research, Inc.
  7. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," NBER Working Papers 14373, National Bureau of Economic Research, Inc.
  8. Jan K. Brueckner & Robert W. Helsley, 2009. "Sprawl and Blight," CESifo Working Paper Series 2792, CESifo Group Munich.
  9. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, 06.
  10. David Albouy, 2009. "What Are Cities Worth? Land Rents, Local Productivity, and the Capitalization of Amenity Values," NBER Working Papers 14981, National Bureau of Economic Research, Inc.
  11. Collins, William J. & Margo, Robert A., 2000. "Residential segregation and socioeconomic outcomes: When did ghettos go bad?," Economics Letters, Elsevier, vol. 69(2), pages 239-243, November.
  12. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
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Cited by:
  1. Leah Platt Boustan & Robert A. Margo, 2011. "White Suburbanization and African-American Home Ownership, 1940-1980," NBER Working Papers 16702, National Bureau of Economic Research, Inc.

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